The price of a stereo system with 14% GST is $1026.
- How much does Adam have to pay if the GST is decreased to 9%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the stereo system with 14% GST
= 100% + 14%
= 114%
114% → $1026
1% → 1026 ÷ 114 = $9
100% → 100 x 9 = $900
Price of the stereo system with 9% GST
= 100% + 9%
= 109%
Amount that Adam has to pay
= 109% x 900
=
109100 x 900
= $981
(b)
Saving that Adam enjoys
= 1026 - 981
= $45
Answer(s): (a) $981; (b) $45